Company and Marketing Strategy Partnering to Build ...yunus.hacettepe.edu.tr/~canand/chp2.pdf ·...

CHAPTER TWO

Company and Marketing Strategy

Partnering to Build Customer Relationships

Copyright ©2014 by Pearson Education, Inc. All rights reserved

2- 2Copyright ©2014 by Pearson Education, Inc. All rights reserved

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COMPANY ANDMARKETING

STRATEGY

�Companywide Strategic Planning: Defining

Marketing’s Role

�Planning Marketing: Partnering to Build

Customer Relationships

�Marketing Strategy and the Marketing Mix

�Managing the Marketing Effort

�Measuring and Managing Return on

Marketing Investment

Topic Outline


COMPANYWIDE STRATEGICPLANNING

Strategic planning is the process of developing

and maintaining a strategic fit between the

organization’s goals and capabilities and its

changing marketing opportunities

Strategic Planning


COMPANYWIDE STRATEGIC PLANNINGSteps in Strategic Planning



�The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment

�Market-oriented mission statement defines the business in terms of satisfying basic customer needs

Defining a Market-Oriented Mission


COMPANYWIDE STRATEGIC PLANNING

Business objectives

•Build profitable customer relationships

•Invest in research

•Improve profits

Marketing objectives

•Increase market share

•Create local partnerships

•Increase promotion

Setting Company Objectives and Goals



The business portfolio is the collection of

businesses and products that make up the

company

Portfolio analysis is a major activity in strategic

planning whereby management evaluates the

products and businesses that make up the

company

Designing the Business Portfolio



Strategic business units can be

� Company division

� Product line within a division

� Single product or brand

Analyzing the Current Business Portfolio



Identify key businesses (strategic business units, or SBUs) that make up the company

Assess the attractiveness of its various SBUs

Decide how much support each SBU deserves

Analyzing the Current Business Portfolio


COMPANYWIDE STRATEGIC PLANNING:


� Difficulty in defining SBUs and measuring

market share and growth

� Time consuming

� Expensive

� Focus on current businesses, not future planning

Problems with Matrix Approaches



Market penetration

Market developme

nt

Product developme

nt

Diversification

Developing Strategies for Growth and Downsizing

Product/Market Expansion Grid

a tool for identifying

company growth

opportunities



Market penetration growth by increasing sales to current market segments without changing the product

Market development growth by identifying and developing new market segments for current products




Product development is a growth strategy that

offers new or modified products to existing market

segments

Diversification is a growth strategy through

starting up or acquiring businesses outside the

company’s current products and markets




Downsizing prune, harvest or divest businesses that

are unprofitable or that no longer fit the strategy



PLANNINGMARKETING

Value chain is a series of

departments that carry out

value-creating activities to

design, produce, market,

deliver, and support a

firm’s products



PLANNINGMARKETING

Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system



MARKETING STRATEGY AND

THE MARKETINGMIX


MARKETING STRATEGY AND THE

MARKETINGMIX

Market segmentation is the division

of a market into distinct groups of

buyers who have different needs,

characteristics, or behavior and who

might require separate products or

marketing mixes

Market segment is a group of

consumers who respond in a similar

way to a given set of marketing efforts



MARKETINGMIX

Market targeting

is the process of evaluating each market segment’s

attractiveness and selecting one or more segments

to enter

Market Targeting



MARKETINGMIX

Market positioning is the arranging for a product

to occupy a clear, distinctive, and desirable place

relative to competing products in the minds of the

target consumer

Whole marketing plan supports the positioning

strategy



MARKETINGMIX

� Differentiation begins the positioning process

� Whole marketing plan supports the positioning

strategy



MARKETINGMIX

Marketing mix is the set of controllable tactical

marketing tools—product, price, place, and

promotion—that the firm blends to produce the

response it wants in the target market

Developing an Integrated Marketing Mix



MARKETINGMIX

Developing an Integrated Marketing Mix


MANAGING THEMARKETING EFFORT


MANAGING THEMARKETING EFFORT

Marketing Analysis – SWOT Analysis


MANAGING THEMARKETING

EFFORT

Executive summary

Marketing situation

Threats and opportunitie

s

Objective and issues

Marketing strategy

Action programs

Budgets Controls

Market Planning—Parts of a Marketing Plan



EFFORT

Implementing

�Turns marketing plans into marketing

actions to accomplish strategic

marketing objectives

�Addresses who, where, when, how

Marketing Implementation



EFFORT

Functional organization

Geographic organization

Product management organization

Market or customer management

Marketing Department Organization



EFFORT

Controlling

� evaluating of results

� taking of corrective action to achieve objectives

� Operating control

� Strategic control

Marketing Control


MEASURING ANDMANAGING

RETURN ONMARKETING INVESTMENT

Return on Marketing Investment (Marketing ROI)

Return on marketing

investment

� is net return from a marketing

investment divided by the costs of

the marketing investment.

� provides a measurement of the

profits generated by

investments in marketing

activities.


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